Work

A data driven assessment of structural barriers to electrical equipment manufacturing in Bangladesh: trade dependency, industrial competitiveness, and policy pathways

Year: 2026

Type: article

Abstract: The rapid expansion of Bangladesh’s power and industrial sectors has led to a significant increase in demand for electrical equipment, a large portion of which is currently fulfilled through imports, resulting in sustained foreign currency outflows and supply chain vulnerabilities. This study investigates the feasibility, opportunities, and constraints associated with developing local assembly and manufacturing of electrical equipment, with particular focus on transformers and low- and medium-voltage panels. The analysis is based on a mixed-method approach that integrates foreign trade data from FY 2021–22 to FY 2023–24, industry-level information, and policy evaluation to assess import dependency, domestic manufacturing capability, and export potential. The findings reveal that the sector is characterized by high reliance on imported finished products and raw materials, indicating structural limitations in local value addition and technological capability. However, the study demonstrates that strengthening domestic manufacturing can significantly reduce import dependency, shorten procurement lead times, and enhance supply chain resilience while generating employment and supporting industrial skill development. Furthermore, the analysis identifies key fiscal and procurement policy reforms as critical enablers for improving cost competitiveness, facilitating import substitution, and unlocking export opportunities. The study highlights the strategic importance of developing a robust local manufacturing ecosystem to support long-term industrial sustainability and economic resilience in Bangladesh.

Source: Scientific Reports

DOI: 10.1038/s41598-026-72639-z

Authors: Munawar Arif Nitol, Shah Mohazzem Hossain, Al Amin Hossain, Marran Al Qwaid, H. T. Zubair, Md Tanjil Sarker

Institutions: Military Institute of Science and Technology, Shaqra University, Multimedia University

Language: English

Topic: Global Trade and Competitiveness

Subfield: Strategy and Management

Field: Business, Management and Accounting

Domain: Social Sciences

SDGs: Industry, innovation and infrastructure, Decent work and economic growth

Open Access status: gold

Estimated APC paid: $2,690